Describe how you could use hypothesis testingto help make a decision in your current job
- Describe how you could use hypothesis testingto help make a decision in your current job, a past job, or a life situation. Include a description of the decision, what would be the null and alternative hypotheses, and how data could ideally be collected to test the hypotheses.
Hypothesis testing involves measuring or ascertaining the effect of one element on the other by exploiting the relationship statistically. As a manager, hypothesis testing is crucial since it guides the decision I make. In this case, I had to decide on increasing the labor to influence productivity. I had to determine the effect rising the number of workers will have on the output of the company.
The first step in the test was collecting data of the company to use in expressing the relationship statistically. The data may found in the storage or cloud servers of the company at the same time management consultancy firms may provide the data due to the previous interactions with the company. The results of the test are always either null or alternative hypothesis. A null hypothesis is the one that will show there will be no effect on productivity even after increasing labor. An alternative hypothesis show they will be an impact on productivity once the number of workers is increased.
- Describe how you could use confidence intervals to help make a decision in your current job, a past job, or a life situation. Include a description of the decision, how the range would impact the decision, and how data could ideally be collected to determine the interval.
A confidence interval involves a range with a margin of error in excess or less, but the actual value is included in the range. The confidence interval is essential to business. As a businessman, it could help significantly during market research. As a business person, marketing is crucial since I should be in a position to know the sales I will make. With that information, I will design my production so that the items produced will match the sales. Since it is impossible to know the number of sales the business will make, that where the confidence interval comes in. The confidence interval helps the business person by predicting the range where the sales will probably fall.
Experts in confidence interval gather their information from past sales, customers’ information, competitors’ sales, and other sources. The information collected is analyzed to help the business estimate future sales. Such information gives the business an advantage other the competitors and may control under production and overproduction.
- Describe how you could use regression analysisto help make a decision in your current job, a past job, or a life situation. Include a description of the decision, what would be the independent and dependent variables, and how data could ideally be collected to calculate the regression equation.
Regression analysis is a statistical tool that is used to determine the relationship between two or more variables. Through the regression, analysis forecasting can happen for businesses, for example, helping in predicting the future demand of products. Regression analysis uses an equation to express its measurements. The equations are made up of independent and dependent variables. The dependent variable is one trying to be estimated, while the independent variable is used as a model to predict the dependent variable.
As a manager, regression analysis has been crucial in the company. For example, I could predict the number of people watching the favorite program in the country. With that information, I could help the company in determining the right time to pay for an advert—that way, and most people will see the information in the advert. Data used during regression analysis, in this case, is collected from news houses that air the games and other sources that might prove useful.